Transform Your TFSA Into a Cash-Generating Machine With Just $10,000

Do you have $10,000 sitting idle in your TFSA? Use it to generate cash with stocks that give both dividends and capital appreciation.

Puja Tayal

Author Bio

Puja Tayal grew up in a small-business family where dinner conversations often centred on working capital and savings. Her early experiences with investing, particularly during the 2008 financial crisis, shaped her approach to understanding markets and evaluating investment opportunities. She began her career at a mutual fund company before moving into investor education and financial writing for asset and wealth management firms. Before joining The Motley Fool, Puja wrote for Market Realist, where she extensively covered the semiconductor industry. Her published work has also appeared in The Indian Express. Puja believes every stock has a story that can help investors understand its potential returns. She combines business analysis with different investing approaches to help investors make informed decisions and align their portfolios with their long-term financial goals. Outside of finance, Puja enjoys long drives, catching up with friends, watching superhero and science-fiction movies, and managing her family portfolio. She also has a keen interest in artificial intelligence and its potential to reshape the world.

Education

Bachelor's degree in Accounting and Finance, University of Mumbai (2007)
CFA Level I

Areas of Expertise

Qualitative company analysis, management strategy, risk assessment, long-term investing, portfolio diversification and rebalancing, dividend reinvestment, cyclical growth opportunities, compounding strategies, growth stocks, and dividend stocks.

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Favorite Investment Quote

"Risk comes from not knowing what you're doing." — Warren Buffett

Published April 30, 2025 3:45 pm EDT

Wouldn’t it be nice to see your $10,000 grow and also pay you cash every year? The stock market has some hybrid growth and dividend stocks that can generate returns in multiple ways. These are companies that are small- or mid-cap stocks and are scaling their business. However, their business model helps them earn a recurring cash flow, which they use to reinvest in the business and pay dividends.

Canadian dollars are printed — Source: Getty Images

Converting $10,000 in your TFSA into a cash-generating machine

You can use such stocks to build a cash-generating machine that can complement your daily expenses. Instead of keeping your cash idle in a bank account or a guaranteed investment certificate for years, invest it in these growth and dividend stocks and put your money to work.

Grow your cash with goeasy

goeasy (TSX: GSY) is a non-prime lender that earns recurring income from the high interest it charges on loans. The company’s loan portfolio earns it a 31-32.5% yield. It has been increasing its loan portfolio by raising debt capital through securitization and using that money to lend at a higher interest rate. goeasy earns from the difference in the low interest paid and higher loan activity. It also maintains a credit loss provision whenever it sees a risk of default. So far, its charge-off rate is at 8-10% of the loan portfolio.

goeasy is scaling its operations by launching new loan products, expanding into new geographies, and reaching customers through different distribution channels. The loan portfolio is the asset of goeasy, which determines its stock price. When default increases, asset value decreases, and so does share price.

Trump tariffs raised fears of a recession, creating fears of high credit risk. Hence, goeasy stock fell 27% during the tariff uncertainty from January 24 to April 4. While this may not be a rosy period for the non-prime lender as tariffs can hurt discretionary spending, its strong execution and improved risk strategy can help it withstand difficult times.

The company even increased its quarterly dividend by 24.8% in 2025. It can continue paying dividends. Although a 3.7% dividend yield may look small, an average annual dividend growth rate of 30% can bring in strong income.

A $5,000 investment in goeasy five years ago would now be $18,720. Moreover, a dividend income of $216 in 2020 would be $700 in 2025.

Kickstart payments with Fiera Capital

Fiera Capital (TSX: FSZ) is another good stock to fuel your TFSA cash machine. This asset management company earns recurring income from management fees, which it uses to pay dividends. Its $167.1 billion asset under management (AUM) is diversified across equity, fixed income, private market, and alternative investments. A majority of the investments are in Canada (63%) and the United States (20%).

The tariff wars pulled down the stock market, which affected Fiera’s AUM and, hence, its stock price. A recovery in the stock market could boost the company’s net asset value and drive the stock price. While Fiera Capital doesn’t grow dividends, you can lock in a 13.9% dividend yield by buying the current dip.

A $5,000 investment in Fiera Capital can earn you $696 in annual dividends. A recovery in share price to $8 from $6.2 at present can grow your $5,000 to $6,448.